Why did God want the Jews circumcised?


Let's begin by looking at the following Scripture:
This is my covenant with you and your descendants after you, the covenant you are to keep: Every male among you shall be circumcised. You are to undergo circumcision, and it will be the sign of the covenant between me and you.

For the generations to come every male among you who is eight days old must be circumcised, including those born in your household or bought with money from a foreigner - those who are not your offspring. Whether born in your household or bought with your money, they must be circumcised. My covenant in your flesh is to be an everlasting covenant. Any uncircumcised male, who has not been circumcised in the flesh, will be cut off from his people; he has broken my covenant.
(Gen. 17:10-14)
Circumcision was a sign or evidence that the children of Israel were in covenant with God. A covenant is similar to a legal document; God made a covenant with Abraham and his descendants.

God's part in the covenant was to protect and bless the children of Israel. This is why David made this statement concerning Goliath:
And David spake to the men that stood by him, saying, What shall be done to the man that killeth this Philistine (Goliath), and taketh away the reproach from Israel? For who is this uncircumcised Philistine, that he should defy the armies of the living God?
(1 Sam. 17:26)
Even though Goliath was a giant, David realized that he would not fight Goliath alone. It was God with David because David was in covenant (circumcised), and Goliath wasn't. Circumcision was a sign of his covenant with God Almighty.

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